CyTerra Settles Contract Fraud Claims for $1.9M; Whistleblowers to Get $361K

Massachusetts-based CyTerra Corporation has agreed to pay the U.S. government $1.9 million to settle allegations that CyTerra failed to provide the U.S. Army with accurate, complete, and current cost or pricing data for its products, causing the government to pay more than it should have, the Justice Department announced this week.

In 2003, the U.S. Army awarded CyTerra a contract for the production and delivery of AN/PSS-14 hand-held mine detection units.  The contract was modified several times to provide for the production and delivery of additional mine detection units.  The government alleged that, in negotiations concerning three of these contract modifications, CyTerra knowingly failed to provide the Army with the most recent cost or pricing data on the number of labor hours needed to produce a mine detector.  Under the Truth in Negotiations Act, CyTerra was required to provide “accurate, complete and current” cost or pricing data.  The government alleged that if the Army had received such information, it would have negotiated a lower price.         

The lawsuit was originally filed by Kevin Bartczak and Keith Aldrich, former CyTerra executives, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud against the government to sue on behalf of the government and claim a share of the recovery.  Bartczak and Aldrich will receive $361,000 as their share of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.